The Overlooked Real Estate Strategy That Could Define New York’s Next Mayor

As Manhattan’s commercial real estate market continues its gradual recovery, billions of dollars in potential property value still sit dormant. Aging retail spaces, partially vacant office buildings, and underperforming public spaces exist alongside some of the most valuable real estate on Earth.

Lessons from the 1970s and `80s remind us that the risk of deferred maintenance and municipal backlogs can significantly disrupt the various city departments overseeing city planning, buildings, sustainability and revenues as well as New Yorkers’ quality of life. However, a comprehensive inventory of municipal buildings, when brought together with market-driven expertise and municipal know-how, could truly solidify New York’s legacy as one of the world’s best cities.

While private developers aggressively optimize their holdings, municipal governments often lack the specialized expertise needed to identify and unlock the value in their own portfolios. NYC is no exception to this blind spot. This gap creates an opportunity for municipal property advisers (MPA) — specialists who bridge public administration and commercial real estate — to transform underperforming assets into community-serving developments while generating sustainable revenue streams. 

One such pioneer in this space is Ben McAdams, a former member of Congress who also served in the Utah State Senate and as mayor of Salt Lake County. McAdams’s organization, Putting Assets to Work (PAW), has been working with several U.S. cities to pioneer a replicable solution — tangibly growing the network of local governments that are collaborating with their residents on new ways to fund local priorities.

As noted in a white paper published by McAdams, Bruce Katz and Luise Noring, the City of Austin is using local procurement to hire third-party MPAs that manage the disposition and repositioning of public assets and drive redevelopment on the jurisdiction’s behalf. These MPAs are responsible for identifying, monetizing and redeveloping underutilized public assets to drive public objectives, including the production of affordable housing, through private investments.

While the role of MPAs isn’t standardized, several cities have implemented dedicated positions or teams that serve similar functions. Copenhagen, Denmark’s capital, is often thought of as a model city among urban planners thanks to its approach of employing a team of property portfolio managers. Working within the municipal real estate division, their goal is to advise on strategic property decisions to optimize building usage. In industrial areas like Nordhavn, there have been well-documented financial returns and measurable public benefits.

In Seoul, South Korea, there is no property adviser. However, the city employs elements of strategic property management as part of its urban development approach. Seoul’s Urban Regeneration Authority focuses on revitalizing urban spaces while balancing public benefit with economic development. Its Urban Regeneration New Deal Program identifies city-owned property for partnership with private developers in targeted neighborhoods. The city’s Compact City initiative similarly focuses on optimizing existing spaces rather than outward expansion. While the metropolitan government is focused on city assets, these programs project a cohesive network of oversight to seamlessly ensure development that will serve the community.  

In short, these top-tier global communities demonstrate why an MPA in New York City could fundamentally shift how we conceptualize public assets in our cities to supercharge a calculated, deliberate plan for growth and development. With NYC’s mayoral election already heating up, we urge the candidates to think about envisioning a future where underutilized real estate can be transformed into desirable destinations for the community.

The public sector must evolve from reactive caretaker to proactive equity partner, stitching together cohesive micro-communities from disconnected places. This municipal leader must be someone who understands both how public value and market dynamics can work together to strategically evolve potential. The question isn’t whether New York or other cities can afford such expertise, but whether we can afford to continue without it.

Joseph Brancato is a regional managing principal at architecture firm Gensler and chair of its executive committee.